You are here: Home » Companies » News
Business Standard

Delhivery may make it to FTSE index in Dec, MSCI India by next May: Analyst

The stock, however, is unlikely to get added to the benchmark Nifty and Sensex indices anytime soon, he says .

Topics
Delhivery | logistics sector | FTSE

BS Reporter  |  Mumbai 

Delhivery was, till recently, planning to launch an IPO, but experts believe those plans would be put on the backburner
Delhivery was, till recently, planning to launch an IPO, but experts believe those plans would be put on the backburner

Logistics major is likely to get added to the All-World Index by December and the MSCI India index by May 2023, said analyst Brian Freitas of Periscope Analytics, who publishes on Smartkarma.

The stock, however, is unlikely to get added to the benchmark Nifty and Sensex indices anytime soon, he added.

The Softbank-backed firm’s Rs 5,235-crore ($685-million) initial public offering (IPO) opens for subscription on May 11 and closes on May 13. The price band for the issue is Rs 462-468 per share. At the top-end, will be valued at Rs 35,284 crore ($4.6 billion).

“Listing after mid-May, the earliest that will be eligible for inclusion in the indices is at the December quarterly index review (QIR) where data from 11 November will be used to compute the free float. To be included in the All-World index, Delhivery will need to have a market cap of $3.95 billion and an investable market cap of $463 million,” said Brian.

“The earliest that Delhivery will have a decent shot at inclusion in the MSCI India Index is at the February 2023 QIR, though inclusion at the May 2023 SAIR has a higher probability,” he added.

Delhivery will fail to meet the threshold market cap required to fast-track entry into FTSE and MSCI indices. For MSCI index inclusion via fast entry, a stock would be required to have full market cap at $8.71 billion and free float market cap at $4.36 billion, as per current market dynamics.

Delhivery’s IPO will be the second-largest this year after LIC. Its offering will also test investor appetite for startup and tech IPOs.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, May 06 2022. 17:54 IST
RECOMMENDED FOR YOU
.